The purpose of this statement is to commit to writing the objectives and policies established by the Investment Committee (the "Committee") and approved by the Board of Directors of the Workers Compensation Board (the "Board"). The purpose in establishing objectives and policies is three-fold: 1. To ensure that all members of the Committee and the Board clearly understand the goals and direction of the Investment Portfolio (the “Fund”.) 2. To facilitate the delegation of investment management responsibilities. 3. To act as an anchor in turbulent times when it may appear appropriate to abandon the established investment disciplines. The process of determining the correct objectives and policies includes the following: 1. Clearly identify the nature of the benefit liabilities of the WCB for which the WCB of Manitoba has a fiduciary responsibility. 2. Identify assets which have characteristics similar to the liabilities being assumed. 3. Select the asset classes which best suit the needs of the liabilities and which will provide the highest rate of return at an acceptable level of risk. 4. Provide sufficient diversification to eliminate unnecessary risk.